Piramal Finance Ltd (PIRAMALFIN) Quarterly Report Analysis & Insights

Piramal Finance Ltd

| Standalone Financial Results for Q4 and Year Ended March 31, 2026

⬤27th Apr 26

Summary : Piramal Finance reported strong profit and EPS growth, declared a significant dividend, and progressed strategic amalgamations, despite negative operating cash flow and asset impairment.

Quarterly Report Analysis & Insights

Financial Disclosures

Standalone FY26: Finance costs (6,294.94 Cr), Employee benefits expenses (1,768.36 Cr), Impairment allowances/(reversals) (319.04 Cr reversal)
Consolidated FY26: Finance costs (6,378.62 Cr), Employee benefits expenses (1,811.24 Cr), Impairment allowances/(reversals) (321.35 Cr reversal)
Standalone FY26: Interest income (10,706.94 Cr), Dividend income (1,417.17 Cr), Fees and commission income (433.65 Cr), Other operating income (599.22 Cr)
Consolidated FY26: Interest income (10,623.20 Cr), Dividend income (52.57 Cr), Fees and commission income (433.95 Cr), Other operating income (599.22 Cr)
Standalone FY26: Net cash from operating activities ((15,799.25) Cr), Net cash from investing activities (2,622.85 Cr), Net cash from financing activities (12,194.11 Cr), Cash and cash equivalents at year end (3,962.45 Cr)
Consolidated FY26: Net cash from operating activities ((15,892.30) Cr), Net cash from investing activities (2,630.90 Cr), Net cash from financing activities (12,392.68 Cr), Cash and cash equivalents at year end (4,123.12 Cr)
Standalone FY26: Total Assets (109,542.43 Cr), Loans (84,927.12 Cr), Investments (10,494.30 Cr), Total Liabilities (80,320.17 Cr), Equity (28,435.12 Cr)
Consolidated FY26: Total Assets (110,546.47 Cr), Loans (84,838.02 Cr), Investments (9,813.83 Cr), Total Liabilities (81,553.53 Cr), Equity (28,191.47 Cr)
Both standalone and consolidated financial results are presented and audited.
Consolidated results include subsidiaries, joint ventures, and associates.

Corporate Overview

Concentrated in India
Impairment of investment property (590 crores)
Negative cash flow from operating activities
Lending and investing
Factual and reporting on approvals and financial performance, with a focus on compliance and strategic restructuring.
Co-lending portfolio primarily personal loans (99.99%)
Interest income
Dividend income
Fees and commission income
Other operating income
Composite Scheme of Arrangement (amalgamation with Piramal Enterprises Limited)
Proposed Scheme of Amalgamation (Scheme-I) with subsidiaries
Scheme of Amalgamation (Scheme-II) with other entities

Risk Factors

Negative cash flow from operations.
Impairment of investment property.
New Labour Codes may impact liabilities.
Reliance on unaudited subsidiary/JV data.

Key Drivers

Profit for the year significantly increased.
Earnings per share showed strong growth.
Board recommended a high dividend.
Strategic amalgamation schemes are progressing.

Auditor’s Report

Unmodified opinion on Standalone and Consolidated Financial Results
Unaudited financial results for Q4 FY25 and audited FY25 results after composite scheme
Balancing figures for Q4 FY26
Unaudited financial statements of certain subsidiaries, joint ventures, and associates
Actuarial valuation of Pramerica Life Insurance Limited

Board Commentary

Re-appointment of Mr. Suhail Nathani as Independent Director for a second term of 5 years
Board recommended Final Dividend of Rs. 11 per equity share (550%) for FY26, subject to shareholder approval.
Impairment of investment property (590 crores)
Potential impact of new Labour Codes on employee benefit liabilities
Compliance with SEBI Listing Regulations, Companies Act, and RBI Guidelines
Monitoring potential impact of new Labour Codes
Composite Scheme of Arrangement (amalgamation with Piramal Enterprises Limited)
Proposed Scheme of Amalgamation (Scheme-I) with subsidiaries
Scheme of Amalgamation (Scheme-II) with other entities

Corporate Governance

Auditors confirmed compliance with Code of Ethics
Re-appointment of Independent Director Mr. Suhail Nathani
Nomination and Remuneration Committee
Audit Committee

Management Discussion & Analysis

Future Strategy

Streamlining corporate structure through amalgamation schemes

Operational Focus Areas

Compliance with SEBI and RBI regulations
Maintaining adequate security cover for Non-Convertible Debentures (NCDs)

Performance Drivers

Significant increase in profit for the period/year
Strong growth in Earnings Per Share (EPS)
Successful sale of equity stake in Shriram Life Insurance Company Limited
Dividend income from subsidiary Piramal Fund Management Limited

Risk Control Measures

Maintained 100% security cover for NCDs

Critical Risks

Impairment of investment property (590 crores)
Potential impact of new Labour Codes on employee benefit liabilities
Negative cash flow from operating activities